I started a new internet based business selling baby products that I embroider.
To buy materials wholesale I signed up for a State of Kansas retailer's sales tax registration certificate and a federal EIN.
Now the big question is -- what do I need to do for taxes? I filled out all of the paperwork as the sole proprietor. My husband and I file yearly joint married personal taxes. Can I treat the income from this new business as income on our personal taxes? Do I need to file something for the business with the state of Kansas and / or the IRS? How often? I've read about needing to file (something?) quarterly as opposed to yearly?
This is a brand new business and so far we've only brought in $310 gross sales. Does that minimal number change the situation any? Also none of these sales were shipped within KS, and I know internet sales tax is a murky topic of its own...
After subtracting off the cost of goods and credit card fees we've only grossed $88 net profit. And if you subtract off all of the surplus materials I've purchased in bulk that haven't been used yet we're actually negative profit.
Thanks for the help!!!
New Business -- What do I need to do for taxes?
You need to find a tax accountant fast. Most businesses must file quarterly tax statements.
Call the Small Business Administration and talk to their experts to make sure you are doing everything required by the law.
